Tyco Electronics said it would pay $12.75 cash per share, a 44 percent premium to ADC’s closing price on Monday.

It said the deal would help it expand in the market for consumer electronics like smart phones, 3D television and video-conferencing. It said the deal would boost earnings by 14 cents per share in the first full year after closing.

The deal is expected to be completed in the fourth calendar quarter, Tyco Electronics said. ADC would be required to pay a $38 million termination fee, according to an SEC filing.

“It’s a smart deal,” said telecommunications equipment analyst Lawrence Harris of C.L. King. “The fiber-optic connectivity space is an area that’s going to experience growth in the next several years.”

ADC shares jumped $3.68, or 42 percent, to $12.53 on the Nasdaq. Tyco Electronics gained $1.09, or 4.4 percent, to $26.37 on the New York Stock Exchange.

TELECOM CONSOLIDATION

ADC products, including copper and fiber-optic cables and network access devices, enable the delivery of high-speed data. The company reported net sales of $997 million for its 2009 fiscal year, which was 11 months long because of a change in reporting periods.

Fiber-related sales accounted for more than a third of ADC’s sales in the most recent quarter.

“You’ll see phone company networks switching more to fiber versus copper, and certainly devices like cellphones, and increases in data traffic, are going to drive fiber optic sales,” said Harris, who rated ADC a “strong buy” with a $13 price target.

Tyco Electronics was paying a healthy premium but ADC shares were at multi-year low, said Longbow Research analyst Shawn Harrison. The company wanted to use acquisitions to diversify away from the automotive connectors business that still accounts for a large portion of its sales.

“It’s really a bet on growth in bandwidth more than anything else,” Harrison said.

Since the company was spun off from former parent Tyco International Ltd TYC.N, in 2007, it has spent more time divesting businesses than buying them, so ADC marks the first significant acquisition since its restructuring.

The deal follows a series of recent mergers among telecommunications carriers — who account for a significant portion of ADC’s customers — and their suppliers, a trend driven by recession and the high cost of investing in the latest wireless and fiber-optic technologies.

As customers such as AT&T and Verizon have grown through acquisitions, the industry has spent less on capital investments, said Christian Schwab, an analyst at Craig-Hallum Capital Group.

That profit beat suggests rivals Molex Corp MOLX.O and Amphenol Corp (APH.N) “should have a very good June quarter,” said Longbow’s Harrison. Analysts may have to raise earnings estimates for the two companies ahead of their earnings results in coming weeks, he said.